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Marginal Gas Data

MARGINAL GAS

Marginal gas is natural gas produced from a well that operates on the lower edge of profitability. Generally speaking, these are low-volume “strip- per” gas wells – defined by the IOGCC as a natural gas well that produces 60 thousand cubic feet (Mcf) per day or less.

e table below indicates the status of marginal gas production during the past 10 years. e number of gas wells in the marginal category has steadily increased during the past decade. However, the total marginal production and average daily production per well decreased slightly in 2006.

Marginal gas wells represented nearly 9 percent of domestic natural gas production in 2006.

As with marginal oil wells, “abandoned” natural gas wells are those that have been permanently plugged.

1996

168,702

986,676,219

4,671

16.0

1997

189,756

1,042,153,002

4,661

15.0

1998

199,745

1,104,683,975

4,203

15.2

1999

207,766

1,138,979,506

3,546

15.0

2000

223,222

1,258,726,664

3,534

15.5

2001

234,507

1,353,516,378

3,600

15.8

2002

245,961

1,418,273,779

3,870

15.8

2003

260,563

1,478,105,524

3,883

15.5

2004

271,856

1,539,960,495

4,129

15.5

2005

288,898

1,760,063,552

4,517

16.7

2006

296,721

1,708,407,584

4,463

15.8

U.S. Marginal Gas Well Data – Past 10 Years

Year

Average Daily Prod. Per Well (Mcf)

Number of Mar-

Marginal Gas

Plugged/Aban-

ginal Gas Wells

Production (Mcf)

doned

11

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